Example 2
The exchange sum E is £60.
The provision expense PE is £150
The cost of providing the sickness benefits is £85.
£150(Pe) - £60(E) = £90
The cost of providing the sickness benefits is £85, so D = £85
Putting these values into the formula: £150(PE) – £85(D) = £65
£60(E) is not substantially less than £65, so the voucher is a cash voucher.